U.S. Court Dismisses Years-Long Scam Token Lawsuit Against Uniswap Labs
A federal courtroom within the United States has dismissed a category motion lawsuit accusing Uniswap Labs of facilitating the buying and selling of rip-off tokens on its decentralized protocol. The courtroom dismissed the plaintiffs’ claims with prejudice after 4 years of trial.
According to a filing with the U.S. Court for the Southern District of New York, Judge Katherine Polk Failla dismissed the case for a number of causes, together with the plaintiffs’ failure to allege the defendants’ data of the fraud. Among different causes, the choose additionally dominated that the plaintiffs did not allege that Uniswap Labs and its founder, Hayden Adams, aided, abetted, and considerably assisted the fraud.
Uniswap Wins Scam Token Class Suit
While submitting the preliminary grievance and the primary amended grievance (FAC) in April and September 2022, respectively, the plaintiffs alleged 14 claims in opposition to Uniswap, Adams, and different defendants. The complainants argued that the defendants have been answerable for rip-off tokens issued and traded on Uniswap.
The argument stemmed from the truth that the identities of the rip-off token issuers have been unknown. They claimed that Uniswap served as a market for the tokens in exchange for transaction charges. The plaintiffs additionally insisted that the defendants had, in impact, offered the tokens as unregistered broker-dealers by drafting good contracts that enabled possession of the protocol’s native asset, UNI.
By August 2023, the courtroom dismissed the FAC for failure to state a declare below federal securities legal guidelines. Judge Failla insisted that the accusers’ makes an attempt to carry defendants answerable for the losses from the scams have been unconvincing. Although the complainants appealed the dismissal, the Second Circuit courtroom affirmed the choose’s resolution partially in February 2025. The enchantment resulted within the plaintiffs once more being allowed to amend their grievance.
No Plausible Claims
In the second amended grievance (SAC) filed in May 2025, the accusers centered on state-law violations. By this time, the choose had dismissed all defendants besides Uniswap and Adams. By July, the defendants had filed a movement to dismiss below the Federal Rules of Civil Procedure.
In dismissing the SAC, Judge Failla insisted that the plaintiffs nonetheless did not allege believable claims in opposition to Uniswap, regardless of three makes an attempt.
“Even if Plaintiffs had adequately alleged Defendants’ precise data, their declare would nonetheless fail as a result of they haven’t alleged that Defendants offered substantial help to the issuers’ fraud,” the choose said.
Meanwhile, Adams commented on the dismissal, calling it a “good, smart final result.”
The put up U.S. Court Dismisses Years-Long Scam Token Lawsuit Against Uniswap Labs appeared first on CryptoPotato.
